An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
You might also like to view...
Alice, Bob, and Cody live in Wesland. Their annual incomes and the amounts they pay in income tax are shown in the table below. Income Tax Alice 30,000 6,000 Bob 50,000 7,500 Cody 100,000 12,000 The income tax in Wesland is
A) proportional. B) regressive. C) flat-rate. D) progressive.
In the United States, ________ percent of all firms are sole proprietorships
A) 4 B) 14 C) 72 D) 82
Of the following, which is the best example of structural unemployment?
(a) A computer programmer who quits his/her job to move to a warmer climate. (b) A construction worker who loses his/her job in the winter. (c) A car worker who loses his/her job during a recession. (d) A steel worker who is replaced by a robot.
If a consumer is willing to pay $5,000 for a used car that is a free of mechanical problems and $1,000 for a used car that will require extensive repairs, the consumer will offer:
A. $5,000 for a used car if the probability that it is free of mechanical problems is 50 percent. B. $3,000 for a used car if the probability that it is free of mechanical problems is 50 percent. C. $6,000 for a used car if the probability that it is free of mechanical problems is 50 percent. D. $1,000 for a used car if the probability that it is free of mechanical problems is 50 percent.